Pico MES, a software company that connects tools and machines on the shop floor, has raised a $12.4 million Series A round led by Bosch Venture Capital.
The round also included new investors Momenta and Counterpart Ventures, and the funding will be used to expand Pico's product capabilities and onboard new employees.
The Redwood City-based company was founded by manufacturing veterans from companies like General Motors and Tesla. The team sought to build a manufacturing execution system (MES) tailored to the needs of small and midsize factories.
"Most MES software is designed for large enterprises and is too complex and expensive for smaller companies," said Pico CEO Ryan Kuhlenbeck.
The Pico software platform gives operators step-by-step instructions on screens and connects directly to machines and tools on the shop floor.
"This reduces mistakes and anxiety for workers while also capturing critical manufacturing data," Kuhlenbeck said.
Pico has integrated over 150 different types of industrial equipment and can automatically analyze data to suggest improvements.
Kuhlenbeck has experience operating a factory in the Bay Area from his time as director of advanced manufacturing at Alta Motors. He says his experience helped him develop software that would improve the performance of smaller factories
Over 30 factories are currently using Pico's software, with more than half in the electric vehicle and climate tech sectors. This includes battery startup Lithos Energy and charging company Tritium.
Kuhlenbeck said Pico's investors skew more toward players in the manufacturing space than traditional startup investors. The round was led by Bosch, a manufacturing giant considered the largest automotive supplier in the world.
"I think this shows where we really are in this industry and how also how important the solution really is," he stated. Schneider Electric, focused on energy management and automation, also invested.
The funding will allow Pico to hire around 20 more employees from its current 25 and further build out its product platform. Pico will also be "investing heavily in marketing for the first time," according to Kuhlenbeck.
